CORPORATE REPUTATIONAL LOSS AND REGULATORY SANCTIONS IN SECURITIES MARKET: THEORY, REGULATORY FRAMEWORK, AND ENFORCEMENT IN VIETNAM

Tóm tắt

This paper reviews key perspectives on corporate reputation and reputational loss,
followed by an analysis of Vietnam’s regulatory framework and enforcement practices
in the securities market. Drawing on existing literature, it first examines the conceptual
dimensions of corporate reputation, highlighting its economic importance and influence
on firm performance. It then reviews empirical evidence on corporate reputational loss
showing that misconduct harming customers or business partners leads to significant
reputational damage, whereas violations without direct harm have limited effects.
Using data from 2013 to February 2024, the study finds a sharp increase in both the
number of sanctions and the total value of fines imposed on corporations in Vietnam’s
securities market. The steady rise in average fines suggests not only more frequent but
also more serious violations. A notable feature of Vietnam’s regulatory system is the State
Securities Commission’s (SSC) public disclosure of all sanction decisions. This transparency
not only strengthens accountability and deterrence but also exposes firms to reputational
risk, effectively turning each sanction into both a financial and reputational penalty that
reinforces market integrity.